Malvern, Pennsylvana-based Vanguard Group, the iconic mutual fund and investment manager, has announced that it will be transferring 1,300 employees to Bangalore, India-based Infosys, a business process and consulting vendor.
Those impacted handle employer's 401(k) retirement plans and are mostly located in Malvern, with some employees located in Arizona and North Carolina.
The employees performing functions in technology support, client administration, operations, and record-keeping will work at the Malvern Infosys office located nearby.
According to a company spokesperson, there should be a "seamless transition" with employees keeping their same pay and benefits for the first year.
According to a published report, "Vanguard has said that using contractors, for example in times of financial stress such as a recession, can enable the company to operate with minimal disruption by reducing workforce without mass firings of its own staff, as happens cyclically at Wall Street banks and other financial employers."
The process is known as re-badging and isolates the employees from their old employer. Many believe it is simply a layoff program with a long-tail. Others cite cases where employees were forced to train replacement H1-B visa foreign workers who earn lower wages. Like all outsourced operations with a contractual basis, it is possible that the functions will be re-bid in the future and the loss of a contract can result in a mass layoff.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
AM I NEXT? GAMBLING ON ELON MUSK?
JANUARY 13, 2021 — A SCARY STATISTIC
Tesla would need 1,600 YEARS to earn the money invested in the company on the stock market
“Experts warn that the company would need 1,600 years to earn as much money as has been invested in the stock market at this current earnings rate. Its share price is currently 128 times the amount of earnings per share. The industry average is for the share price to be around 15 times the price of earnings per share. <Source>
MAY 3, 2018 — TESLA: AND THE GAME GOES ON
It is a testament to the personal charisma of Elon Musk, the effectiveness of his graphic arts people and public relations team, and the apparent willingness of investors to highly value a company whose cash burn rates are phenomenal and whose history is one of over-promising and under-delivering. With the only profitable quarter resulting from the sale of emissions credits to other vehicle manufacturers, one might ask what the real value is other than promises of a productive and profitable future?
Here is a vehicle company mired in side-deals like Space-X, The Boring Company, Solar City, and various battery production ventures which appear cross-collateralized to some degree. All of which require government tax abatements, grants, contracts, and subsidies to exist. It is almost like all of the Musk-related enterprises have a single customer: the government.
It appears that Musk escaped, once again, another day of reckoning by posting another loss, but one that was smaller than Wall Street expectations – and, of course, promising a better, brighter future. In this case, claiming that the company “aimed to achieve profitability and a positive cash flow by the third and fourth quarters, turning around an era of cash burn that has fueled skepticism about the electric-car and solar-panel maker.”
As has been mentioned before, there is nothing special about Tesla’s battery technology. And that other vehicle makers who will be entering the market in the near future with massive offerings might pose an existential threat to Tesla’s lower-cost vehicles – especially if they step-up their design game and offer a good-looking product. Tesla’s self-driving and feature software are still questionable, and then there is the specter of soul-sucking unionization.
Let us not forget that while Tesla is not profitable at present, it does have approximately $2.67 billion in cash-on-hand, and reported $3.4 billion in first-quarter revenue. According to analysts, up to 31% of Tesla’s shares were borrowed by short-sellers who hope to profit from underperformance and continued delivery delays.
IS ELON MUSK TRAPPED IN A BUBBLE?
So while investors gamble on profitability, Tesla's employees are gambling on continued employment. Even though Tesla did fire more hundreds of employees with little or no warning, citing poor performance reviews, there is no guarantee that Tesla will not adjust its headcount to meet Wall Street projections. Perhaps time to execute your side-hustle and reduce living expenses?
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?